[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/","headline":"Customer data management\u2014Best practice and CDP","name":"Customer data management\u2014Best practice and CDP","description":"Customer data management is customer service you can't see with results you really can measure. CDPs deliver exceptional customer data management solutions.","datePublished":"2021-05-13","dateModified":"2024-11-20","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/amanda-magee\/#Person","name":"Amanda Magee","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/amanda-magee\/","identifier":383,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/31d192a92932f8061f51a1ebc0f27663f339079b63a5df3c859f0410e97e8775?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/31d192a92932f8061f51a1ebc0f27663f339079b63a5df3c859f0410e97e8775?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/simplifyData_1200x375.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/simplifyData_1200x375.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/data-analytics-customer-insights\/big-data\/","name":"Big Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Big_data","http:\/\/www.wikidata.org\/entity\/Q858810"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/cdp-customer-data-platform-general\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},"Consent data management",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/data-analytics-customer-insights\/customer-behavior\/","name":"Customer Behavior","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Consumer_behaviour","http:\/\/www.wikidata.org\/entity\/Q62719163"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},"Customer Journey","Customer profiles: Customer Identity + Access Management (CIAM) for B2B and B2C",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/uncategorized\/","name":"Uncategorized","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Categorization","http:\/\/www.wikidata.org\/entity\/Q5884621"]}],"wordCount":1309,"keywords":["Benefits of a CDP","Big Data","CDM | Customer Data Management","CDP | Customer Data Platform","Customer Service","Marketing Automation","Unified Customer Profile"],"articleBody":"Simplifying a process like customer data management can require acknowledging that your existing systems have been outgrown. Solutions like customer data platforms (CDP) are built to manage the ins and outs of data, privacy, and KPIs that businesses have today.Despite working in a culture that’s rapidly evolving, many of us struggle to cut the cord and abandon systems that were built for a time that has passed.A customer data platform (CDP is an end-to-end software system that gathers, organizes, and unifies customer data from multiple tools). The topic of data management has been in the news for a few years, though for many people it’s still a mystery.Some questions people ask around data platforms include:\u00a0How does CDP benefit my business?\u00a0More importantly, how can I be so confused by something intended to simplify data management?\u00a0The first time I heard CDP was a customer data platform I had to hide the glazed eye look of, “Yeah, I still don’t get it.”This content is hosted by a third party ( giphy.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowSo let’s break down the mystery of the acronym that stands to help you unlock data in ways you cannot even imagine. It’s necessary to understand that when the management of data is simplified – which is the magic of\u00a0CDP – making the most of the data becomes easier, more effective, and\u00a0CDP also improves the overall customer experience.      As data breaches abound, customer data management becomes C-suite priority                Customer data management best practices allow businesses to fortify their customer relationships. The potential for growth, in commerce and trust, is massive.      Customer data management: How to build a strategyData management means having a plan for what you are going to do with data. You wouldn’t buy a cartload of gourmet groceries without having some sense of what you are going to use them in, would you?Give yourself guardrails for success in building a customer data management strategy:Establish standards\u2014Collection, consent, transparencySet goals\u2014Define how you will use the dataUnify data\u2014Integrate data to create a single source for multiple departments to avoid silosSafety\u2014Commit to protecting your customers and your organization from hacks or breachesResearch\u2014Stay in the know about regulations like CPRAHow a platform can help to manage your customer dataCDPs are the answer for consumers, businesses, and technology that have evolved beyond the way we’ve always done it. The collective desire for an extensible solution to simplify customer data management (CDM) has grown too. CDPs create a single place for data that is then processed for the benefit of departments across the entire enterprise.Organizations are inundated with a tremendous volume of data that’s collected. CDP assures that none of it goes to waste, and helps businesses hone in on the specific data needed to achieve their KPIs.Basically, CDP is the souped-up tech version of the barista who knows every aspect of your drink order or the salesperson at the boutique who meets you once, then forevermore knows your size, taste, and budget\u2014AND never makes you feel ashamed. You’ve probably experienced it when you’ve had something happen to you as a consumer that made you think, “That was so easy!”The struggle with finding the perfect CDP or the optimal moment for a company to transition to CDP is this:How on earth do you get marketing, IT, sales, corporate,and logistics to agree on needs and objectives tosimplify data management?This content is hosted by a third party ( giphy.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowBenefits of a customer data platformThe more we learn about data, the more we realize that we’re vastly underutilizing its potential. Enter CDPs.By creating ways to highlight, discard, and transform data, CDPs create a roadmap from what before felt like an insurmountable mountain. They can take you from a position of data languishing to a process of infusing marketing actions and business objectives with salient data that improves revenue and the customer experience.This content is hosted by a third party ( giphy.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowHow a customer data platform can help to manage customer dataHere are 5 ways CDPs make sense of customer data:Data Aggregation\u2014Everyone needs help getting the gist of something, CDPs take data from different places and formats and summarize it in a cohesive way.Discretization\u2014There’s always that one person at a dinner party who monopolizes the conversation, consistently steering it away from the subjects people prefer. Data discretization converts data to a discrete form to eliminate “the noise” of small fluctuations.Generalization\u2014Are you bothered by people who get in the weeds instead of focusing on the big picture? Data generalization, also called “blurring,” takes a data value and puts it in a less precise value to keep the focus.Normalization\u2014You might call this, “Get to the point.” Data normalization reduces redundancies and removes unnecessary characteristics.Manipulation\u2014Remember the celebrity recipe book that “hid” vegetables? This type of data management alters the data to make it easier to swallow.This content is hosted by a third party ( giphy.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowData can work for you in new waysThe more data, the more opportunity, particularly when it is accessible to other systems and originates from. unified customer database.This content is hosted by a third party ( giphy.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowHere are ways party data can be treated through a CDP to tell us more:Attribute Construction\u2014We are all seeking to distill the purest information. Sometimes this means adding attributes to help peel away data that isn’t as relevant.Integration\u2014Do you know the European folk story of Stone Soup? Everyone in the village is invited to contribute something to the soup. By sharing their items, it makes the whole stronger. Integration takes data from a range of sources to make a fine data stew.Smoothing\u2014This technique of addressing data uses an algorithm to take away noise. This allows the data to predicts trends by having specific data stand out.Customer Journey Orchestration\u2014Customer journey orchestration moves data into a customer mindset. It contextualizes a customer’s journey by building on data that informs how to best provide for them in real-time. If a customer does not follow the path historically assigned to first-time buyers, this approach allows for the sales process to adapt and for customer loyalty to be built.This content is hosted by a third party ( player.simplecast.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowData management is customer serviceThe question about CDPs or investing in your CDM is no longer an if, it’s a when. The long and short of it is the more you delay embracing the potential of CDPs, the greater distance you put between what your customers expect and deserve and what you offer. Join hands with data to understand, manage, and satisfy your customers.This content is hosted by a third party ( giphy.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew Window  Real-time insights.Across all touchpoints.Yes. For real.Get the details\u00a0HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"05","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"13","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/05\/\/13\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Customer data management\u2014Best practice and CDP","item":"https:\/\/www.the-future-of-commerce.com\/2021\/05\/13\/simplify-data-management-with-cdp\/#breadcrumbitem"}]}]